The latest research from ValuePenguin reveals that the US home insurance market is experiencing significant volatility. In a survey of nearly 2000 policyholders, about two-thirds of the surveyed households reported a premium increase in 2024, which is a decrease from last year's 72% increase.

It is worth noting that the anxiety about the renewability of housing insurance has shown a sharp increase. Currently, half of the policyholders are concerned about the possibility of losing their underwriting eligibility in the future, which is almost double the 26% concern rate in 2024. Actual business data shows that the proportion of policy termination notices received has increased from 19% last year to 25%, with an average monthly premium payment remaining at $179.

Specifically regarding the magnitude of rate adjustments, 38% of price increase cases involve a 10% or higher rate increase. In terms of cost pressure, 44% of respondents admitted that their premium burden has increased compared to previous years, and 34% of policyholders have responded to financial pressure by reducing coverage. 24% of consumers question the necessity of residential insurance, and nearly one-third of the population is considering adopting a risk retention strategy.

The current market environment poses a severe test for ordinary homeowners, "said Rob That, an expert at ValuePenguin." The difficulty of obtaining sufficient protection continues to increase in key areas such as California, Texas, and Florida. "Research shows that the three major factors affecting market confidence are inflation (26%), industry systemic risk (16%), and climate change (12%).

The intergenerational differences are particularly significant: Generation Z (18-28 years old) has 84% concerns about the prospect of renewing their insurance, while the millennial generation (29-44 years old) has 67%, and the baby boomer generation (61-79 years old) has only 27%. According to the corresponding business data, the proportion of Z generation receiving non renewal notifications is as high as 56%, millennial generation is 36%, X generation (45-60 years old) is 17%, and baby boomer group is only 9%.

Faced with market turbulence, 62% of consumers are calling for government intervention and regulation, a significant increase from last year's 52% support rate. The proportion of Generation Z who support intervention has reached 79%, highlighting the urgent expectation of young people for market stability.

From the perspective of industry fundamentals, insurance companies are facing dual pressures. The frequent occurrence of natural disasters has pushed up claims expenses, coupled with inflation in construction costs, forcing insurance companies to maintain operations through rate adjustmen, Thatchtt added." Some companies have taken measures such as shrinking their business scope and suspending new underwriting.

Although 63% of consumers attribute the increase in insurance premiums to inflation factors (compared to 72% last year), industry experts emphasize that this is the result of multiple factors working together. The current data shows that 35% of premium adjustments are concentrated in the range of 5% -9.9%, indicating the cautious attitude of insurance companies in risk pricing.

Overall, based on the above practical scenarios, it is urgent to address the concerns of policyholders. In addition, more measures need to be taken to enhance the reliability of insurance policies!